2010 (8) TMI 243

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....tc. They procured some of the inputs like Copper Plates/Sheets in Coil etc., from a 100% EOU. The supplying unit being a 100% EOU, has paid duties of excise in terms of proviso to Section 3 of Central Excise Act, being an amount equal to the aggregate of the duties of customs which would be leviable under the Customs Act or any other law for the time being in force on like goods produced or manufactured outside India if imported into India. Thus, the supplying unit has paid excise duty which included amounts equal to the basic customs duty, additional duty leviable under Section 3(1) of the Customs Tariff Act, 1975 and additional duty to counter balance sales tax and other local levies leviable under Section 3(5) of the Customs Tariff Act. ....

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..../06-Cus., dated 5-6-06 also refers the levy of 4% as CVD/special CVD. Therefore, he submits that they are eligible for the cenvat credit and the demand is not sustainable. 5. Alternatively, he also submits that the dispute involves interpretation of legal provisions and there is no suppression of any relevant information or mis-statement on the part of the appellants and therefore, part of the demand is time barred as the show cause notice was issued on 11-1-08. He also submits that, on the same ground, no penalty can be imposed. 6.Ld. SDR reiterates the findings and reasoning of the Commissioner (Appeals). 7. I have carefully considered the submissions from both sides and perused the records. In the present case, the u....

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....der clauses (i), (ii), (iii), (iv), (v), (vi) and (via); (viia) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act………….. In respect of inputs procured from 100% EOU, and Cenvat Credit Rules provides for taking credit based on a formula prescribed under Rule 3(7) of the Cenvat Credit Rules, 2004. The dispute is whether the term CVD used in the said sub-rule 3(7) refers only to additional duty leviable under Section 3(1) of the Customs Tariff Act or that the same also includes the additional duty leviable under sub-section 3(5) of the Customs Tariff Act. Undoubtedly, from 1-3-05, if the inputs were imported, the manufacturer would be eligible for cenvat credit of duties paid under Section 3....